The Ford that finally dethroned Holden
By Byron Mathioudakis · 08 Aug 2026
In 1977, something remarkable, and even almost unthinkable just a few years earlier, happened.For the first time in decades, a Holden was no longer Australia’s best-selling car for a full calendar year.The HX Belmont/Kingswood/Premier trio was beaten by Ford’s XC Falcon/Fairmont duo, pipped to the post by just 572 units. 53,934 versus 54,506.Released exactly 50 years ago, we take a look at why the car that finally dethroned a Holden changed the face of Australian motoring forever.Developed in the USA to take on the hyper-successful VW Beetle, the original Falcon launched in Australia in 1960, purely to reel the Holden in.Back then, one-in-two vehicles sold in Australia were by General Motors-Holden’s (GMH), and it was making a ton of money for its American parent. Such obscene profits were too much for Ford to ignore.Yet it took 11 versions, over 17 years, for the Falcon to finally achieve its mission.Yes, Ford first climbed to the top for one month only with the then-new XB Falcon in December, 1973, but 1977 was the year of the XC.Here’s the irony. The XC Falcon was drab, lacking the Mustang-look edge of its handsome XB predecessor, which later found international fame as the basis for the original Mad Max movie car.Laughably tiny round headlights didn’t help. And its interior was plain jane boring, replacing the previous, cool ‘waterfall’ fascia that wrapped around the driver years before BMW thought of doing it.The XC also killed off the legendary Falcon GT.Yet Australians still loved it. Go figure. (Hint: the HX was terrible).By any objective standard, but especially global ones, even back in the day, the Australian family cars that are so loved and collectable today were far from great in the 1970s.Based on the same American principles and formula that created what we now dub The Malaise Era, the contemporary Kingswood, Falcon and Chrysler Valiant were oversized yet cramped due to bad packaging, alarmingly thirsty yet comparatively slow (not Valiant) given their large engine capacities, tricky to drive in the wet and on gravel, rust prone, poorly equipped, low on braking ability and inconsistently built.In contrast, a Peugeot 504, VW Passat, Rover P6 or Mercedes-Benz compact were streets ahead for comfort, safety, efficiency, driving pleasure and quality, if not outright performance. Embarrassingly so.With all this in mind, historians reckon the HX was Holden’s worst model to date.The introduction of stricter emissions standards, known as Australian Design Rule 27A (ADR27A) would make the poorer Australian cars even worse.Just as Ford had done, Holden also launched the barely facelifted HX range in July, 1976, sporting a different grille, new instrumentation… and that’s largely it.But the big barge also drove rougher, used more petrol and performed worse than the preceding HJ that was hardly a media darling itself.The critics very publicly savaged the HX and consumers increasingly wary.In contrast, the corresponding XC Falcon boasted big changes to its engines for ADR27A, resulting in output and economy improvement claims of 10 per cent or more.Neither brand’s powertrains could touch the Valiant’s awesomely strong Hemi engines, just to be clear here. However, the Falcon’s were miles better than Holden’s.Note that tighter steering and better-tuned suspension did make the XC the best to drive, whilst that (albeit dubious) dash redesign, expensive exterior sheetmetal restyles and a new nose job also helped make the Ford seem fresher.You know how the XC dropped the GT? Ford replaced it with the Fairmont GXL, and marketed it as a European-style grand touring driver’s car, complete with rarities for the era such as a limited-slip diff, four-wheel disc brakes, alloy wheels and sports suspension.Buyers and critics alike lapped it up. Fairmont’s big rectangular headlights helped a lot too.Largely unrealised at the time, the GXL also softened Australians to the idea of a less-American Falcon.The 1979 XD successor was not far away and, for the first time in the series' history, it adopted visual cues from Ford of Europe's Granada range, rather than from Detroit.The HX’s poor showing, combined with the XC’s more-favourable reviews, must have lit a fire under GMH, because the HZ that replaced it just 15 months later in October, 1977, brought much-improved handling, smoother engines and scores of minor upgrades.More importantly, it ousted Falcon from the top spot the following year.The Opel-derived VB Commodore arrived late in 1978 and the Falcon would not top the annual sales charts again until 1982 – though it then stayed at number one until 1989.Falcon wasn’t even the company’s first roll of the dice.Ford spent a small fortune during the 1950s trying with the UK Zephyr series (fun fact: the first production car with MacPherson strut front suspension), but, though good, it was too expensive against the Holden.Something cheaper and more basic was needed, and Detroit was planning just such a car. In 1958, two Ford Australia execs sighted a Falcon prototype in Michigan and declared: ‘We’ll have some of that, cheers!’, or some such.At the same time, Chrysler, too, invested heavily in Australia, restyling a discarded US Plymouth as the Royal from 1957 to 1963, but sales were sluggish.Its 1962 Valiant successor did far better initially, but The Malaise set in by 1971’s VH series and sales nosedived, forcing Chrysler to exit Australia entirely by the end of that decade.Meanwhile, the British Motor Corporation (BMC) had tried and failed with various Morris and Austin models from the late 1950s, including the Major and Elite respectively, the advanced 1800 of 1966 and its short-lived X6 Tasman/Kimberly replacement from 1970.Long forgotten today, the latter was then succeeded by the also-Australia-only Leyland P76 in 1973. An ambitious task, it mimicked American sedans with big size and power, but struggled to sell despite being more progressive than the Holden/Falcon/Valiant triumvirate.Hundreds of millions in today’s money were collectively sunk by each of the above brands, to no avail, leading to factory closures and job losses.Ostensibly, the XC Falcon won 1977 because it was superior to the HX. But GMH’s biggest enemy lay within.Following the 48-215 hitting the top spot in 1950, Holden become overall market leader three years later.Australians loved “Australia’s Own” car. That this car was owned by one of history’s biggest corporations, yet was heavily bankrolled by Federal and State governments, didn’t matter. Nor did the fact the massive profits generated went to America.By 1960 GMH enjoyed 50 per cent market share. Hubris had set in, as the local operation became infamously rich, complacent, ignorant and combative.But increased competition was just around the corner, especially from Japan. And, after spectacular year-on-year growth since 1948, Holden stumbled with the ungainly HD of 1965. Market share fell to 40 per cent in 1968, 30 per cent by 1973 and 25 per cent in 1976.Perfect conditions for the Falcon to swoop in.Happy 50 birthday, XC Falcon.